If a Body20 franchisee identifies a site, what must they submit before entering into any lease or purchase agreement?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
t of the Royalty Fee, Brand Fund Fee, Training Fee, Technology Fee, or any other fees that we charge, you will pay to us the amount of any taxes imposed on us
or our Affiliates (and any taxes imposed on us or our Affiliates as a result of such imposition) by federal, state, or local taxing authorities as a result of our receipt of any such fees, not including any tax measured on our income.
Section 4 Site Selection, Development, and Opening of Studio
- 4.1 Site Selection. If you identify a site in the Site Selection Area on your own that is reasonably suited for the conduct of the Studio and is consistent with any site selection guidelines that we may provide, before entering into any lease or purchase agreement for the site, you must submit a site proposal package describing details about the proposed site and provide any other information that we reasonably require. We will review each site that we, our designated broker, or you identify and determine whether to accept it using our proprietary site selection assistance criteria. You acknowledge that we may refuse to accept a proposed site for any reason. If we accept the proposed site and you obtain it, we will insert a description of the specific location on Schedule 1 to Appendix A. YOU ACKNOWLEDGE AND AGREE THAT OUR ACCEPTANCE OR PROPOSAL OF A PROPOSED SITE IS NOT A WARRANTY OR REPRESENTATION OF ANY KIND AS TO THE POTENTIAL SUCCESS OR PROFITABILITY OF YOUR STUDIO. WHILE WE MAY PROVIDE ASSISTANCE AND GUIDANCE, IT IS SOLELY YOUR RESPONSIBILITY TO SELECT A SUITABLE SITE FOR THE STUDIO. The address listed on Schedule 1, if completed and signed by us, will be the "Site" referred to in this Agreement. A site is not accepted until you have received our acceptance in writing, as indicated by our delivery of the completed and signed Schedule 1.
- 4.2 Definition of the Territory. Once the Site has been accepted, we will identify your Territory in Schedule 1 to Appendix A based on the factors that we deem relevant, in our sole discretion, which might include demographics, the character and location of the Site, and nearby businesses and residences. Once we have defined the Territory, you will have no territorial or other rights in those portions of the Site Selection Area that are outside the Territory. You must return to us upon our request a signed copy of Schedule 1 to Appendix A acknowledging the Territory we have designated.
- 4.3 Site Acquisition. Before you or an Affiliate make a binding commitment to purchase, lease, or sublease a site, we must accept the location in writing and approve in writing the proposed lease or purchase agreement or any letter of intent between you and the third-party seller or lessor.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, if a franchisee independently identifies a potential site for their studio, they must first submit a site proposal package to Body20 for review. This package should include detailed information about the proposed site and any other information Body20 reasonably requires. This submission must occur before the franchisee enters into any lease or purchase agreement for the site.
Body20 will then review the proposed site using its proprietary site selection assistance criteria to determine whether to accept it. The FDD emphasizes that Body20 has the right to refuse a proposed site for any reason. The franchisee acknowledges that Body20's acceptance of a site is not a warranty or representation of the studio's potential success or profitability.
Furthermore, before making any binding commitment to purchase, lease, or sublease a site, Body20 must provide written acceptance of the location and written approval of the proposed lease or purchase agreement, including any letter of intent between the franchisee and the third-party seller or lessor. This process ensures that Body20 maintains control over site selection and lease terms, protecting its brand and system standards.
If the site is leased, the franchisee must also arrange for the execution of a Lease Rider, in the form of Appendix D, by both the franchisee and the landlord, unless Body20 waives this requirement in writing. This Lease Rider is attached to any lease or sublease for the site and includes any other provisions that Body20 may reasonably require. Body20's review of the Site Lease is for its own benefit only and does not replace a review by the franchisee's attorney. Body20 may also require the franchisee to engage an attorney to review the Site Lease or purchase agreement and provide documentation, such as a lease abstract and confirmation that the terms reflect any letter of intent.